Categories Narrative, Office Market

Market Insight: Q3 2014 Phoenix Office Report

Finally, some good news. The Metro Phoenix Office posted just under 800,000 SF of net absorption for the third quarter. A significant number of the tenants I talked to while canvassing buildings have either just expanded or are considering expanding in the near future. Despite the strong absorption, vacancy remains high at 21.6% across the entire market. Except for South Scottsdale, Tempe and parts of the Camelback Corridor, rents have stayed flat and will continue to remain there until we fall below 20%. Both Craig and I thought we would be hitting the 19% range heading into the fourth quarter. Looks like 2015 will now be the year to hit the teens in vacancy, something we haven’t seen since 2007.
 
Below is the link to our third quarter report and my top three takeaways:
 

    1. 800,000 SF of net absorption is a big news. We are on track to hit 2.5 million SF for the year, which coincidentally is slightly above our 25-year average. So while we think this will be a historically average year, given the recent years of low and negative absorption, we are grateful for this amount of net absorption.

    2. Surprisingly, we have 876,000 SF of speculative office under construction and all of these projects either have preleasing or very good activity. A growing number of owners in Northeast and Southeast Valley submarkets have enough confidence in the market to take a big risk, and they are being rewarded for it . Note there is another 1.5 million SF under construction of build-to-suits including State Farm and Wells Fargo.

    3. Activity is growing in Scottsdale. The collective Scottsdale submarkets as a whole posted five times as muchabsorption in Q3 as they did in Q2. This means Central and North Scottsdale have caught some of the fire South Scottsdale has shown. All three Scottsdale submarkets (16.6 million SF) make up 20% of the Metro Phoenix market. Year-to-date, they account for almost half of the entire market’s net absorption.
I, for one, am looking forward to finishing the year relatively strong and experiencing more robust job growth in 2015.

Andrew
602.954.3769
acheney@leearizona.com

P.S. Below the Q3 2014 Phoenix Office Market Report is an article with a quick update on our Job market and projections for the remainder of the year. The title of the article below says it all…Hopes for Strong 2014 Job Growth Slipping Away in Arizona.


 

For the entire report, click here.
Q3 2014 Phoenix Office Market Report_Page_1

Hopes for Strong 2014 Job Growth Slipping Away in Arizona

azcentral

By: Ronald J. Hansen
October 17, 2014

AZ job growth
Over the past 12 months, Arizona has seen 2.1 percent job growth,
a little better than the nation as a whole and
below the 2.5 percent figure some thought the state could reach in 2014.
(Photo: Cheryl Evans/The Republic)

A hoped-for bounce-back in Arizona jobs this year increasingly looks like wishful thinking.

The state’s unemployment rate officially fell to 6.9 percent Thursday, with Arizona gaining 28,800 net jobs in September.

But the increase largely was the result of teachers and other education-related staffers going back to work. The state’s private-sector employers added just 1,900 jobs last month, with many of those in health care.

Arizona’s jobless rate was 7.1 percent in August.

Over the past 12 months, Arizona has seen 2.1 percent job growth, a little better than the nation as a whole and below the 2.5 percent figure some thought the state could reach in 2014.

The state has hovered around 2 percent annual growth for the past three years, and with three-quarters of 2014 in the books, that seems the path again, economists now say.

“Two percent is definitely where we’re headed for 2014,” said George Hammond, director of the Economic and Business Research Center in the Eller College of Management at the University of Arizona. “To put that in some perspective, our 30-year average is 4.1 percent.”

Those better years typically are driven by solid gains in construction, an industry that pays above-average wages and grew rapidly during the state’s housing boom.

Now, however, the industry has shrunk to 1994 levels — and is still losing workers. Those losses continue to pull down the state’s economy.
 

Few signs of growth

From construction to manufacturing to the aerospace and defense-related industries, Arizona’s traditional sources of growth aren’t picking up.

The plodding pace means Arizona ranks near the bottom nationally in recovering its job losses from the Great Recession.

Arizona’s unemployment rate remains 1 full percentage point higher than the nation’s.

Jeffrey Kravetz, regional investment director for US Bank Wealth Management in Phoenix, said that Arizona isn’t attracting new residents as it normally does and that Millennials, young adults who should represent the next wave of homebuyers, aren’t buying in large numbers.

“There’s not a huge demand for single-family homes,” he said.

Arizona’s tepid recovery is similar to the soft recovery in California and other states where real estate has outsized value, Kravetz said.

Aruna Murthy, director of economic analysis for the Arizona Office of Employment and Population Statistics, said the state has now regained 62 percent of the jobs it lost in the downturn.

By contrast, in May, the nation as a whole got back to the employment level it had when the recession began in December 2007.

Through August, only three states had fared worse than Arizona by that measure.
 

Little growth in September

Across the state and in most industrial sectors, employment was little changed in September.

“The private-sector didn’t do as well as expected, but government did better than expected,” Murthy said. “I would have wanted a better private-sector report.”

Drinking establishments, for example, posted their worst September in five years. Leisure and hospitality more broadly continued a five-year trend of smaller job gains in September.

And construction continued to hemorrhage jobs, losing an additional 2,900 last month. Over 12 months, that industry has lost 8,300 jobs, easily the worst in the state.

Over the past year, the state has gained 53,200 non-farm jobs. Of those, 49,700 were in the private sector, and the rest were in government.
 

Bright spot: Health care

Ambulatory health-care services, the kind of work often done in clinics, was the largest share of the fastest-growing sector. Hospitals and nursing care also posted solid gains.

One example: Abrazo Health, which includes six acute-care hospitals and other facilities, hired 1,165 employees from October 2013 to September 2014. It currently has about 4,300 employees.

After that, employment services, which includes temporary workers, was among the sectors that saw the most employment growth.

Murthy said the number of temporary workers is still climbing, which typically signals the economy isn’t growing as it did a decade ago.

Other recent disappointments have hobbled Arizona’s recovery.

In September, Tesla Motors formally announced that it picked Reno over Arizona and three other states for its planned battery factory.

On Thursday, GT Advanced Technologies, the company Apple paid to make sapphire glass at a factory in Mesa, announced 727 layoffs as part of a bankruptcy that began earlier this month.

The new jobs numbers shouldn’t suggest panic or near-term prosperity, Murthy said.

“If you ask me, it’s the same September as last year,” she said. “At least we’re growing 2 percent. Some states aren’t even doing that.”

As late as October 2007, Arizona’s unemployment rate stood at 3.8 percent, almost 1 full percentage point lower than the nation’s. Arizona’s unemployment rate rose above the national average in June 2008 and has stayed higher ever since.

Nationally, 248,000 jobs were added in September, better than what many analysts had expected.

Also on Thursday, the U.S. Labor Department announced that initial jobless claims nationally had fallen to a 14-year low.

Still, the labor-force participation rate has fallen to its lowest level since 1978, a factor that has helped bring down the unemployment rate without more robust hiring.
 

Better days ahead?

In some ways, the job report already seems a worryingly late measure of the economy.

Markets around the globe have been churning for a week on fears of a recession in Europe.

Looking toward next year, UA’s Hammond believes 2015 already is shaping up to be little better than 2014.

Kravetz said the U.S. economy seems to be gaining strength, even if Arizona isn’t seeing faster growth. He said that oil prices may lift consumer spending in the near term.

As recently as June, crude oil went for $115 a barrel. Now, it costs $83, a decline that consumers should see at the pump.

“That’s a huge boost for consumers. They will spend that at the mall,” he said.

Some employers, especially in retail, are already expecting a surge in customers.

With holiday shopping around the corner, the Phoenix market has been hiring in slightly greater numbers for several weeks, said Sherri and Charles Mitchell, founders of All About People, a Phoenix-based recruiting and staffing firm.

Many of the jobs are in retail and are seasonal in duration, Sherri said.

“Beyond the holidays, I think there’s a little more skepticism,” Charles said. “There’s a lot of uncertainty out there.”

 

Data: Job growth by industry sector

Arizona isn’t growing as fast as it usually does or as fast as economists had projected earlier this year.

Here is job growth by major sector over the past 12 months:

Education* and health services: 17,200 jobs.

Professional and business services: 14,400 jobs.

Leisure and hospitality: 9,200 jobs.

Financial activities: 8,400 jobs.

Trade (retail), transportation and utilities: 5,400 jobs.

Government**: 3,500 jobs.

Other services: 2,300 jobs.

Manufacturing: 400 jobs.

Natural resources and mining: 400 jobs.

Information: 300 jobs.

Construction: -8,300 jobs.

* Includes for-profit education companies. ** Includes public and charter-school teachers.

Source: Arizona Office of Employment and Population Statistics

Categories Recent Transactions

Alliance of Arizona Non-Profits Moves to 360 E. Coronado

Congratulations to the Alliance of Arizona Non-profits on their relocation to 360 E. Coronado, Suite 120, in Phoenix. The Alliance of Arizona Nonprofits is a unifying association formed in 2004 to advance the common interests of more than 20,000 nonprofits in the Grand Canyon State. They are a statewide organization of, by, and for all of Arizona’s nonprofits.

Alliance post

Categories Narrative

Burnout Is the Consequence of a Broken Way of Work

Some of the below article is complete new-age BS. I do think, however, that there is some value in giving it a quick overview, focusing on a few key items. I hope you can get a gem or two out of this article as you get closer to the end-of-the-year review process for your team.

For my team, I know we don’t have any of this now. Personally, I read this article to see if we are potentially creating burnout on our team. I think we are pretty good at control. Lord knows we overpay. 🙂 We are engaged as a team and in the community. I think we speak the unspoken truth trying to be open, upfront, and fair.

Craig
602.954.3762
ccoppola@leearizona.com

P.S. In the beginning of this year, we did a five week review of new tech companies’ corporate headquarters–Amazing new projects that cost huge sums of money. Recently, our own Chelsea Clifton had the privilege of receiving a behind-the-scenes tour of the existing Facebook Headquarters. Chelsea likened the headquarters to a relaxed college campus with abundant FREE conveniences for all employees–including stocked snack areas in every building; three cafeterias that serve breakfast, lunch and dinner; and a handful of full-service restaurants–Again, all FREE to employees with UNLIMITED USE!

Chelsea said the work areas are large, open rooms with desks very close to each other, with no divisions such as cubicles or closed-door offices, and all employees are free to decorate their desk with balloons, pictures, etc. There are no phones at any of the desks–all employees are issued iPhones. Every work area has couches, TVs, and even minibars! All of the restrooms on campus have showers, lockers, and any toiletry you would ever need–again, all free.

The new campus is being built right across the street and Chelsea said it appears that there is going to be an underground tunnel to connect the two campuses. Enjoy the photos.

photo 4 (7)

photo 1

photo 3 (2)

photo 2

photo 2 (5)

photo 3 (6)


 

 Burnout Is the Consequence of a Broken Way of Work

GIGAOM Research

By: Stowe Boyd
November 30, 2013

It’s the time of the year where we can start to feel overly stressed by the demands of work, family, and community. But for some of us, the stress at work can become more than a short term spike of too many items on the to-do list: it may be burnout.

Burnout is generally misunderstood. It’s not just the individual feeling helpless in the face of overload. It is really the fraying of the relationship of the burned out person and their work: their engagement in work, and the ties between the individual and the organization — and the social networks that make it up. It is a chronic issue, not a short term or seasonal sense of stress, and can lead to a deep sense of self-doubt, desperation, and cynicism. Widespread burnout is the systemic consequence of a core failure in society and business culture, and a compelling argument for a better, radically different way of work.

Widespread burnout is the systemic consequence of a core failure in society and business culture, and a compelling argument for a better, radically different way of work. Some research shows that the troubled economy is contributing to greater degrees of job stress and burnout, as Sharon Jayson reported on a survey from The Conference Board in 2012:
— 63% say they have high levels of stress at work, with extreme fatigue and feeling out of control.
— 39% cite the workload as the top cause of stress.
— 53% take frequent “stress breaks” at work to talk with others; 36% say they just work harder.
— Almost half (46%) cite stress and personal relationship issues as the most common reason for absences, ahead of medical reasons or care-giving responsibilities.

Christina Maslach is one of the leading researchers on burnout and its costs, both personal and societal. Maslach and her contributors created the Maslach Burnout Inventory, which addresses three scales contributing to burnout. And the factors include the obvious issue of workload — having too much work and not enough resources, but also these:

·         lack of control — micromanagement of your work by others, lack of influence over decisions impacting your work, and accountability without power

·         insufficient reward — not enough pay relative to the work done, lack of acknowledgment, and low job satisfaction

·         low engagement with community — sense of isolation, high degree of conflict, and a feeling of being disrespected

·         unfairness — perceived discrimination and favoritism

·         mismatched values — the presence of unresolved ethical conflicts, or the focus on meaningless tasks, for example.

The authors of the full inventory also created a quick burnout assessment, to help individuals gauge their circumstances and perhaps to start to improve the work/worker relationship mismatch that leads to burnout:

burnout chart

The Bottom Line

By zeroing in on the factors that are contributing to a feeling of burnout, people can take actions to relieve the pressures in that area. If your workload is too high, perhaps you need to learn to delegate, or to push back on managers or coworkers asking you to take on more work. If you feel that you are not being made a party to decisions that affect your work, raise the issue in meetings with coworkers and management, and ask (demand) to be brought into those discussions.

Of course, some situations are beyond the reach of a quick checklist. Sometimes the fit between the job and the worker can’t be bridged.

We are living in a time of great transition, and the unrelenting pace of work and the rising demands of employers are increasing the pressure of workload, but the other factors can be a safety value. While more is being asked of all of us, that should not translate into depersonalization. Greater levels of involvement, autonomy and reengagement with work are possible even with increased workload, but there must be conscious efforts and new practices put in place for that to happen. Otherwise the rate of burnout is going to continue to rise, at least until we have a real revolution in the workplace.

Categories Narrative

Modern Floating Home and Tunle Sap

This week, I have an article, some cool photos, and a very different narrative from my usual e-mail. I recently found an article and some photos about a very cool floating home–see below. This home got my mind racing to a place called Tunle Sap.
 
A few years back, I had the opportunity to take a fabulous trip to Nepal (We hiked into Mt. Everest base camp), Thailand (Bangkok), and Cambodia (Angkor Wat). In doing my research planning the trip, I ran across a guy who said we needed to go to a place in Cambodia called Tunle Sap Lake. It was a very interesting lake for a couple of reasons–the lake is part of a fresh water river system and the lake changes flow in directions twice a year. When it does, the size expands and shrinks dramatically. The lake is not very deep and 2,700 square km in total size during the dry season when we visited. In the rainy season, when the water is pushed in, it swells to 16,000 square km—four times the normal size.
 
BUT, that is not why I found Tunle Sap to be one of the most interesting places I have ever visited. In the middle of the lake is a floating city. Below the cool photos of the modern home is a series of photos I took at Tunle Sap with descriptions of each. The place is unreal……Check it out below.
 
If you get a chance to visit Cambodia, this lake is a must see.

Craig
602.954.3762
ccoppola@leearizona.com

P.S. A few months back, I sent out an update on water usage in Arizona. Since then, we have had four inches of rain in one day, and over six inches during the monsoon season—both stats are records for Arizona. Phoenix announced last week a new program on saving excess water for future use. Thought you might be interested in seeing the plan. The article is below the Tunle Sap photos.


 

Modern Floating Home is the Perfect Tranquil Retreat

My Modern Met

By: Jacob Paul Wiegmann
November 28, 2013

Floating House1

Floating House is a home designed by architect Dymitr Malcew that offers its residents beautiful unobstructed views, a connectedness to their surroundings, and an easy way to move from one locale to another. Created for H2ORIZON, a French developer that specializes in floating structures like this one, the stunning construct is built on top of a buoyant platform that comes equipped with two bedrooms, two bathrooms, a living room, kitchen and fully roofed terrace.

Though the architectural structures are typically equipped with similar amenities, the floor plans can be changed to suit any individual’s preferences. Malcew wanted to create a home that barely impacted its environment while also allowing for scenic views that arise naturally but do not visually hinder the breathtaking view of the home’s surrounding landscape.

Floating House2

Floating House3

Floating House4

Floating House5

Floating House6

My Photos of Tunle Sap:

P5020088
The General Store

P5020100
Basketball Court

P5020083
Pig Pen

P5020076
Fishing Right Outside Your Front Door

P5020103
Schoolhouse

P5020078
This photo was taken when the river was down. In the wet season, these trees are covered in water.

Phoenix to start saving excess water in Tucson
azcentral

By: Caitlin McGlade
October 1, 2014

AZ water 2

Phoenix will soon begin diverting some of its share of Colorado River water to Tucson and stocking up to ensure residents and development have enough in the future.

City officials announced the unprecedented agreement on Wednesday, amid projections of a likely Colorado River shortage in the coming years.

The nation’s sixth-largest city only uses about two-thirds of its allotted water. It defers most of the excess back to the Central Arizona Project, which manages Colorado River water for the region, because the city doesn’t have the infrastructure to pump it all, said Kathryn Sorensen, Phoenix water services director.

Phoenix will begin diverting its extra share to Tucson, which has a more extensive pumping system. Tucson can later direct the equivalent amount to Phoenix if supplies run low. Inturn, Tucson will spend less money pumping water because its water levels will stand higher, officials said.

Mayor Greg Stanton called it a matter of “cities taking control of their own destiny.”

The first year of this program would store enough water to serve about 3,000 homes for a year, but that number will grow as the project expands, officials said. And Phoenix may partner with Tucson to expand its infrastructure to store more.

The expansion could cost about $30million, but the mayor noted that the agreement saves the city from having to build additional wells here. Sorensen said Phoenix does not anticipate having to pay the full amount alone.

Phoenix officials said the move will assure the city can support future economic development, as business leaders interested in locating here consistently ask whether the city has enough water to support them.

“If we want to really continue to grow and have economic development in this state, we have to have a guarantee to people coming into this state that the water is going to be there … and this is the mechanism,” Councilwoman Thelda Williams said.

Phoenix is the first in the state to try this method, and the move could set a precedent for other cities looking to stock up, said Tom Buschatzke, assistant director for water planning with the Arizona Department of Water Resources.

The pilot agreement also could test whether the trade brings unintended consequences. For example, some Tucson water providers could need to find an alternative source during high-demand months. The canal narrows toward Tucson and may theoretically not have enough capacity to carry additional water from Phoenix in tandem with existing Tucson demand, Buschatzke said.

But that outcome is unlikely, Buschatzke said, and he has not heard anyone raise concerns about it.

While Tucson’s mayor said the city saves its excess water, most cities, like Phoenix, do not use their full share because they claim more than needed to allow for development, said Bob Barrett, spokesman for the Central Arizona Project.

CAP then channels that water to other entities or stores it in the underground water bank, he said.

Federal officials cautioned a few years ago that population growth and climate change would drain the river’s ability to supply the West unless the region makes major changes to conserve fresh water or make more.

CAP hydrologists have reported a possible shortage by 2016 or 2017.

Seven states share the Colorado River, and Arizona and Nevada have to start cutting back on their take as Lake Mead gets lower while California gets to keep its whole share. The deal dates back to 1968 when Arizona needed to build the CAP Canal and needed California’s support.

In addition, in-state water supplies are shrinking, between the Roosevelt, Salt and Verde Rivers and ground water.

But Barrett and Buschatzke said Valley residents are in good shape for now. They may not even feel an impact until the mid 2020s, Buschatze said.

Sorensen noted that the Phoenix community has adopted a conservation mind-set, as gallons per capita per day has declined about 27percent over the past 20 years.

In the late 1990s, the Water — Use it Wisely campaign launched.

The program, which spread to cities across the country, educates residents on water conservation and tools they can use to save water.

“We are a desert city,” Sorensen said. “We know the value of water. … We know how serious this is.”

AZ water 3
The Central Arizona Project Canal on Oct. 1, 2014, near Picacho Peak.(Photo: Mark Henle/The Republic)

Categories Narrative, Uncategorized

An Analysis of U.S. High-Rise Construction Activity in This Century

Below is a 2013 article Andy Conlin sent me analyzing high-rise construction in the United States. David Holmes takes an in-depth look at the major economic factors affecting skyscrapers (defined as buildings 18 stories or higher in this article) built since 2000. This timeline would include only one construction cycle and two recessions, but the conclusions are interesting. I’ve highlighted the important parts to make this a quicker read.
 
Tying the article to Phoenix, it’s impressive that we made the top 25 list for number of skyscrapers built since 2000. Our seven projects built consisted of four office towers, two hotels and one residential high-rise.
–Skyscrapers serve as a source of civic pride and a symbol of economic vitality for the city.
–High-rise construction is on the decline inside the United States vs. the rest of the world. This is due to the continued long term trend of people wanting to get closer to home. This affects their office space, retail and hotels for guests.
–Phoenix may not add future skyscrapers as defined in the article, but we are adding projects that are five to 15 stories throughout the Valley of the Sun.

Craig
602.954.3762
ccoppola@leearizona.com

P.S. As we wind down another summer, we wanted to share a very cool video that shows one of our most spectacular annual shows if you are here—Monsoon season. Here is an 8-minute video link purely for your viewing pleasure–https://www.facebook.com/video.php?v=10152386878532358&set=vb.273664702357&type=2&theater

Monsoon Video

 


An Analysis of U.S. High-Rise Construction Activity in This Century

High Rise Facilities logo
 

By: David Holmes
high-rises
August 21, 2013
At least 74 high-rises have risen in Miami since the year 2000. Dozens of other high-rise residential buildings have been built in nearby cities such as Miami Beach and Sunny Isles Beach. Image credit: Wikipedia user LonnyPaul

Skyscrapers and skylines have long played a role in the perception of major U.S. cities. The decision by an individual developer or company to “build high” is driven only in part by corporate office space needs or by local market demand for apartments, condominiums, or hotel rooms with a view. The construction of high-rise buildings is also influenced by ambition, ego, and other non-economic factors.

Skyscrapers play a unique role in the urban landscape, serving as a source of civic pride for local residents (for whom the buildings can serve a physical embodiment of the economic vitality of their chosen home city), as a symbol of power and economic might for their developers, owners, or occupants, and as a visible manifestation of human ingenuity and engineering prowess.

Since 2000, the development of high-rise buildings in the U.S. has been influenced by a series of economic and other events. These have included:

  • the 2001-02 recession;
  • the 9/11/2001 terrorist attacks – which added a new element of risk for owners and occupants of the highest towers, as well as led to an increased perception of some major U.S. urban areas as being potential targets weapons of mass destruction;
  • the significant rise in oil prices beginning in 2000, and further escalating during 2003-2008;
  • Hurricane Katrina in 2005 – which increased the potential long-term risk associated with high-rise developments in cities on the Gulf and Atlantic Coasts;
  • the real estate boom of the early to mid-2000s – which resulted in an unprecedented wave of construction of residential towers in many major U.S. cities, followed by the real estate market collapse beginning in 2006, and later the financial crisis of 2007-08 and Great Recession;
  • the slow recovery in both real estate and the U.S. economy that has been in progress since 2009

As these events were unfolding, the construction of high-rise buildings outside of the U.S. accelerated, and the status of the U.S. as a center for high-rise building construction continued to diminish. Evidence for the global increase in the construction of high-rise buildings includes the completion of 58 of the 78 one-thousand-foot or taller skyscrapers that currently exist in the world having occurred since 2000. Evidence for the diminished status of the U.S. as a center for construction of high-rise buildings includes the completion of 54 of the 58 recently constructed 1,000-foot or taller buildings in countries outside of the U.S. – with the most noteworthy of these likely being the 163-story, 2,717-foot tall Burj Khalifa completed in Dubai in 2010.

As a frequent visitor to both Chicago and Miami, I was aware of the boom in high-rise construction that occurred in at least these U.S. cities since 2000. However, I was curious as to the actual extent of high-rise construction that occurred not only in these cities, but in other major U.S. cities this century, and what insights this might provide into the patterns of urban development occurring in different major U.S. urban areas. This article presents the findings of an investigation I performed to find answers to these questions, based on a review of construction data for high-rise (18-story or taller) buildings completed in 67 major U.S. cities during 2000-13.

high-rises 2
Las Vegas has a greater number of hotel rooms than any other city in the U.S. (more than 152,000 as of 2012), with significant numbers of these rooms located in high-rise hotels constructed since 2000.

Methodology

The approach I used to perform this study was to make use of the building construction database available on the skycraperpage.com website. The database at this website includes data for nearly 1,300 U.S. cities and a comprehensive listing of nearly all buildings either 12 or more stories or greater than 115 feet in height, as well as select listings for shorter but otherwise noteworthy buildings. The data for each building typically includes the number of floors, years of construction and completion, current building uses, as well as many other types of information. I restricted my analysis to buildings that are 18 or more stories in height, partly to facilitate an analysis of New York City (for which information on over 5,800 buildings is included in the database) but also in recognition that buildings with a lesser number of stories have limited impact on the skylines of most major cities.

I included in my analysis data for the 50 largest U.S. cities, as well as 17 additional cities representing the principal cities of one of the 50 largest U.S. metropolitan areas. The city and metropolitan area rankings were based on populations as reported by the 2010 census. I included the 17 additional cities in recognition that cities such as St. Louis and Pittsburgh may no longer rank in the top 50 U.S. cities by population, but remain the principal cities of major metropolitan areas as well as cities with large central business districts that have been historical centers for construction of high-rise buildings.  For each of the 67 cities, I tabulated the number of buildings having a specific number of floors (ranging from 18 to 108) for various construction completion dates including the periods pre-1960, 1960-69, 1970-79, 1980-89, 1990-99, and each individual year from 2000 through 2013.  As of June 2013 (when I performed the analysis), a total of 5,398 buildings 18 or more stories in height were present in these 67 cities, including exactly 1,000 completed since 2000.

One limitation for my analysis is that the construction completion dates were not listed for 225 of the buildings (or approximately 4.2% of the total). However, nearly all of the undated buildings are likely to be older buildings, constructed prior to 2000 for which historical construction data are not readily available, that are not relevant to my primary focus on buildings constructed since 2000. One further limitation is that the data are of unknown completeness and accuracy. As a long-time resident of the Milwaukee area, I was able to review the data in detail for the City of Milwaukee, and did not note any errors or omissions in the buildings listed, their construction dates, or listed building heights. Although I cannot vouch for the completeness and accuracy of the data for other cities, the skyscraperpage.com database has reportedly been available on-line for 15 years, providing ample opportunity for errors and omissions to be noted by on-line “champions” of various major cities, and corrected through the crowdsourcing process that includes input from greater than 40,000 registered members. Therefore, I believe the data are accurate enough for my intended purpose of evaluating the relative performance of the major U.S. cities in terms of the completion of high-rise buildings this century, as well as to provide insights regarding differences in recent development patterns in these cities as expressed in the form of high-rise buildings.

To gain further insight into the dynamics driving construction of high-rise buildings in different major U.S. cities and metropolitan areas, I also calculated two ratios: (a) the number of high-rise (18-story or taller) buildings constructed during 2000-13 per 100,000 metropolitan area residents, and (b) the number of high-rise (18-story or taller) buildings constructed during 2000-13 per 100,000 person increase in metropolitan area population from 2000-10. The first ratio was calculated based on a presumption that that the number of high-rise office and residential towers is likely more closely correlated with the size of metropolitan areas than the size of the principal cities. The second ratio was calculated based on the presumption that metropolitan areas experiencing significant population growth since 2000 should see a certain amount of new construction driven solely in response to population growth and increased market demand for new housing (one form of which would be new high-rise residential buildings), and market demand for additional commercial space that should be associated with the increases in the number of jobs and local business activity that typically drive or accompany significant population growth (a portion of which could be met through the construction of new high-rise office buildings).

Rankings of Major U.S. Cities Based on the Number of High-Rise Buildings Completed Since 2000

The data for the highest ranked cities based on the total number of new high-rise buildings constructed as well as the ratios of the number new high-rise buildings per 100,000 metropolitan area residents and per 100,000 increase in metropolitan area population, are presented below together with discussions of key observations related to each ranking method. Table 1 presents the top 25 ranked cities based on the number of buildings with 18 or more stories completed since 2000 for the top 25 ranked cities.  The table also includes data on the current total number of high-rise buildings in these cities and their associated rankings.

Table 1. Top 25 U.S. Cities for High-Rise Buildings Constructed 2000-13
City Total New High-Rise Building Completed (2000-13) Rank Total High-Rise Buildings (as of 2013)  Rank
New York 281 1 2,151 1
Chicago 149 2 701 2
Miami 74 3 130 7
Atlanta 50 T4 134 6
Las Vegas 50 T4 96 11
Houston 38 6 174 3
San Diego 35 7 67 15
Seattle 30 8 100 10
Dallas 22 T9 116 9
San Francisco 22 T9 149 4
Boston 21 11 89 12
Arlington 17 12 47 19
Portland 14 T13 41 T21
Austin 14 T13 27 T32
Los Angeles 13 15 127 8
Philadelphia 12 T16 135 5
Charlotte 12 T16 31 29
Tampa 11 T18 28 T30
Denver 11 T18 69 14
Orlando 11 T18 27 T32
Milwaukee 10 21 40 23
Minneapolis 9 22 76 13
Baltimore 8 23 51 18
Phoenix 7 T24 34 T26
San Jose 7 T24 10 T50
High-rise = 18 stories or greater.  Totals are as of June 2013.

One surprise for me was the very large number of high-rise buildings completed in New York City since 2000. I was surprised because none of the post-9/11 news stories I recall reading noted the extraordinary boom in high-rise construction that apparently occurred in New York City since 2000 (at least 98% of which was unrelated to construction occurring at the site of the former World Trade Center). The high-rise construction boom was robust both in the number of buildings completed (281) and in the number of buildings having 40 or more stories (53). I also hadn’t fully appreciated the historical dominance of New York City in terms of high-rise buildings in the U.S., with the current total of 2,151 buildings nearly equal to the combined total of 2,499 for the next 24 highest ranked U.S. cities.

The boom in high-rise construction in Chicago was even greater than that for New York City on a per capita basis, and was also expressed both in the number of buildings constructed (149) and in the number of buildings having 40 or more stories (42). These included residential towers of 71, 86, and 98 stories completed in 2009-10. Together, Chicago and New York City account for 430 of the 1,000 high-rise buildings completed this century in the 67 major U.S. cities evaluated.

The boom in high-rise construction in Miami (which includes completion of at least 74 high-rise buildings since 2000) has been widely recognized, partly as a consequence of the frequent appearance of the Miami skyline on various TV shows and movies. It should be noted that the data for Miami perhaps to a greater degree than any other principal city do not fully reflect the magnitude of high-rise construction that occurred in the metropolitan area as a whole, as dozens of high-rise residential buildings were completed since 2000 in other cities in the Miami metropolitan area (such as Miami Beach, North Miami Beach, Sunny Isles Beach, etc.).

The relative performance of Los Angeles and San Diego was also interesting to me. Nearly three times as many high-rise buildings have been completed in San Diego since 2000 as in Los Angeles, even though the population of the Los Angeles metropolitan area is more than four times greater than that of the San Diego metropolitan area, and in spite of both cities being southern California coastal cities that are major tourist destinations.

One additional surprise for me was how few high-rise buildings were completed since 2000 in the other 42 major U.S. cities evaluated but not included on Table 1. A combined total of 72 high-rise buildings were completed in these 42 cities since 2000. This is 2 fewer than the 74 buildings completed in the City of Miami alone during this period. The individual totals for these other 42 cities are summarized on Table 2.

Table 2. Summary of High-Rise Construction in Other U.S. Cities (2000-13)
Total # of High- Rise Buildings Constructed 2000-13 U.S. Cities
5 Nashville-Davidson, Sacramento, St. Petersburg
4 Jacksonville, Long Beach, St. Louis, Salt Lake City
3 Indianapolis, Norfolk, Oakland, Pittsburgh, Raleigh, San Antonio, Virginia Beach
2 Cleveland, Columbus, Fort Worth, Hartford, New Orleans, Omaha, Providence
1 Cincinnati, Detroit, Kansas City, Louisville/Jefferson Co., Oklahoma City, Richmond
0 Albuquerque, Birmingham, Buffalo, Colorado Springs, El Paso, Fresno, Memphis, Mesa, Newark, Riverside, St. Paul, Tucson, Tulsa, Washington D.C., Wichita

The lack of high-rise construction in several of the “rust belt” cities included on Table 2 is probably not too surprising given widely reported population declines and economic contractions in several of these cities.  Washington D.C.’s lack of high-rise construction represents a special case, in that the Height of Buildings Act of 1910 limits building heights to the width of the adjoining street plus 20 feet (resulting in a maximum allowable height of 160 feet).

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Oklahoma City had 7 high-rise buildings constructed during the period 1971-1984, but only one, the Devon Energy Tower, during the past 29 years. Image credit: Wikipedia user urbanative

I was surprised by the relative lack of recent high-rise building construction in cities such as Columbus, Fort Worth, Indianapolis, Kansas City, Oklahoma City, San Antonio, St. Paul, and Tucson. All of these cities have a favorable reputation in terms of economic growth, quality of life, etc. All of these cities are located in metropolitan areas with population growth rates during 2000-10 that exceeded 10% (and in the case of San Antonio, exceeded 25%). The lack of high-rise construction in these cities during a period that included perhaps the greatest boom in high-rise residential construction in U.S. history potentially does not bode well for major enhancements to these cities skylines over the next several decades.

Although my analysis was focused on the total number of new high-rise buildings constructed, it is probably important to acknowledge that quantity does not necessarily equal quality.  The most compelling example of this may be Oklahoma City, where the single high-rise building constructed this century was the 52-story 850-foot tall Devon Energy headquarters – which is both an attractive building in its design and execution, and noteworthy nationally in being the tallest building completed in the U.S. in 2012.

One interesting aspect of high-rise construction during the period 2000-13 is the apparent lack of a boom in the construction of high-rise office buildings in the major U.S. cities that are centers for the oil and gas industry (such as New Orleans, Tulsa, and Oklahoma City) in response to the significant rise in oil prices that has occurred this century (with oil prices increasing from an annual average of $11.91 in 1998 to $91.48 in 2008). The lack of high-rise office building construction in these cities is in marked contrast with booms that occurred in nearly all of these cities during the energy crisis and period of escalating or high oil prices from approximately 1974 through 1985.

For example, in New Orleans, 28 high-rise buildings were constructed during the 1970s and 1980s, including one residential tower, 10 hotels, and 17 office buildings. Only two new high-rise buildings have been constructed since 1989 (one hotel and one residential building). Similarly, 14 high-rise buildings were constructed in Tulsa during the period 1970-1986 (10 of which were office buildings including major towers of 52 and 60 stories), but only one high-rise building (an 18 story office tower) has been completed during the past 26 years. Oklahoma City had 7 high-rise buildings constructed during the period 1971-1984, but only one (the Devon Energy headquarters) during the past 29 years. Denver had 45 high-rise buildings constructed during the 1970s and 1980s, but only 11 since 1990 (and nearly all of these are residential high-rises rather than corporate headquarters which dominated the previous energy-business related building boom).

Rankings of Major U.S. Cities Based on the Number of High-Rise Buildings per 100,000 Metropolitan Area Residents

In order to better understand the relative performance of U.S. cities in terms of high-rise construction, I “normalized” the results based on population by calculating the number of new high-rise buildings per 100,000 metropolitan areas residents. Higher ratios indicate a greater ”intensity” of high-rise construction relative to the population of a metropolitan area.  The results for the 15 highest ranked major U.S. cities based on this ratio are summarized below.

Table 3. Top 15 Cities Based on Number of New High-Rise Buildings (2000-13) per 100,000 Metropolitan Area Residents (2010)
City Metro Area Population (2010) Total # of New High-Rise Buildings Completed in City (2000-13) Rank High-Rise Buildings Completed (2000-13) per 100,000 Metro  Residents (2010) Rank
Las Vegas 1,951,269 50 T4 2.56 1
Chicago 9,461,105 149 2 1.57 2
New York 18,897,109 281 1 1.49 3
Miami 5,564,635 74 3 1.33 4
San Diego 3,095,313 35 7 1.13 5
Atlanta 5,268,860 50 T4 0.949 6
Seattle 3,439,809 30 8 0.872 7
Austin 1,716,289 14 T13 0.816 8
Charlotte 1,758,038 12 T16 0.683 9
Milwaukee 1,555,908 10 21 0.643 10
Houston 5,946,800 38 6 0.639 11
Portland 2,226,009 14 T13 0.629 12
Orlando 2,134,411 11 T18 0.515 13
San Francisco 4,335,391 22 T9 0.507 14
Boston 4,552,402 21 11 0.461 15

Las Vegas ranks the highest based on this measure, which is likely attributable to its status as a major tourist destination having a greater number of hotel rooms than any other city in the U.S. (more than 152,000 as of 2012), with significant numbers of these rooms located in high-rise hotels constructed since 2000. These hotels reportedly include 25 of the 50 largest hotels in the world based on the number of rooms.

high-rise 4 2
Chicago, pictured here, and New York City accounted for 430 of the 1,000 high-rise buildings completed this century in the 67 major U.S. cities evaluated.

The next two highest ranked cities by this measure are Chicago and New York City, with ratios of 1.57 and 1.49 recent high-rise buildings completed per 100,000 metropolitan area residents. Both cities are very similar in being: (a) historical centers for high-rise construction in the U.S., (b) major business centers, and (c) major tourist destinations.

Although Miami ranks 4thbased on this ratio, I suspect that it might challenge Las Vegas for the top spot if the number of high-rise buildings constructed in the metropolitan area as a whole was used for the calculation rather than just those high-rises constructed within the city proper.

In general, three categories of cities appear to rank highly by this measure: (a) the two traditional centers of high-rise construction – Chicago and New York City, (b) other major business centers (having greater relative numbers of major corporations and corporate headquarter buildings), and (c) major tourist destinations (with greater relative numbers of major hotels and high-end residential developments targeting retirees or seasonal residents). Because New York City and Chicago represent all three categories, it makes sense that they rank very highly on this measure.

Similarly, Miami is both a major business center and a major tourist destination and should therefore be expected to have a disproportionately large number of high-rise buildings relative to its metropolitan area population. The four cities ranked in the top 15 that don’t necessarily fit into one or more of these categories are Austin, Charlotte, Milwaukee, and Portland. I suspect that high-rise development in these cities is being driven by their status as significant regional business centers, as well as cities with high quality downtown or near downtown urban environments. Overall, I believe that the ratios on Table 2 offer the best rankings of major U.S. based on the “intensity” of high-rise construction this century relative to other cities.

Rankings of Major U.S. Cities Based on the Number of High-Rise Buildings per 100,000 Person Increase in Metropolitan Area Population

The final analysis I performed was to evaluate the intensity of high-rise construction relative to the growth in metropolitan area population, recognizing that increases in population (and the associated increases in jobs and local business activity) should serve as a driver for new residential and office construction – some of which should occur in the form of new high-rise buildings. Therefore, I calculated the ratio of the number of high-rise (18-story or taller) buildings constructed since 2000 per 100,000 person increase in metropolitan area population from 2000 to 2010. Table 4 summarizes the results for the 15 highest ranked U.S. cities based on this ratio.

Table 4.  Top 15 Cities Based on the Number of New High-Rise Buildings (2000-13) per 100,000 Person Increase in Metropolitan Area Population (2000-10)
City Metro Area Population Change (2000-10) Total # of New High-Rise Buildings Completed in City (2000-13) Rank High-Rise Buildings Completed (2000-13) per 100,000 Increase in Metro Area Population (2000-10) Rank
New York 574,107 281 1 48.95 1
Chicago 362,789 149 2 41.07 2
Milwaukee 55,167 10 21 18.13 3
Miami 557,071 74 3 13.28 4
Boston 161,058 21 11 13.04 5
San Diego 281,480 35 7 12.43 6
Providence 17,855 2 T40 11.20 7
San Francisco 211,651 22 T9 10.39 8
Las Vegas 575,504 50 T4 8.69 9
Seattle 395,931 30 8 7.58 10
San Jose 101,092 7 T24 6.92 11
Baltimore 157,495 8 23 5.08 12
Atlanta 1,020,879 50 T4 4.90 13
Portland 298,128 14 T13 4.70 14
Philadelphia 278,196 12 T16 4.31 15

New York City and Chicago are again ranked highest among major U.S. cities, and by a significant margin. Milwaukee and Providence have the greatest increase in their rankings based on this ratio versus their rankings based on the absolute number of high-rise buildings constructed. They are also the two smallest metropolitan areas represented in the top 15. The significance of this ratio is probably a good topic for debate, as only a small percentage of the population resides or works in high-rise buildings. Slow growth cities score well based on this ratio.

Summary of Key Findings

In summary, the most significant or most surprising findings for me included:

  • The dominance of New York City and Chicago which accounted for 430 of the 1,000 total new high-rise buildings completed this century in the 67 major U.S. cities evaluated.
  • The apparent lack of any negative impact from the 9/11 terrorist attacks on the boom in high-rise construction that occurred in New York City, as well as Chicago.
  • The magnitude of the high-rise construction boom in Miami, as well as the apparent lack of impact from Hurricane Katrina in dampening the enthusiasm for constructing new high-rise buildings in oceanfront locations that are likely most at risk from future major hurricanes.
  • The surprising lack of recent high-rise construction in a majority of the cities evaluated, with the combined total of only 72 new high-rise buildings in 42 cities (2 fewer than were constructed in in the City of Miami alone).
  • The higher than anticipated performance by several cities, in particular Milwaukee, which ranked 21st, 10th, and 3rd by the three measures, in spite of its current status as only the 39th largest metropolitan area in the U.S. (and a city not frequently recognized for its skyline).
  • The apparent absence of recent high-rise office construction in the major U.S. cities that are centers for the oil and gas industry, in response to the recent period of high oil prices, which is in marked contrast with booms in the construction of high-rise office buildings that occurred in nearly all of these cities during the 1974 to 1985 energy crisis and period of escalating or high oil prices.
Categories Recent Transactions

SkySong 3 achieves LEED Certification

We are excited to announce that our listing SkySong 3 has officially gone “green” by achieving the elite Silver LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council. http://cem-az.com/skysong-3-building-awarded-leed-silver-certification/

commercial executive mag logo

SkySong 3 Building Awarded LEED Silver Certification

SkySong 3 has officially gone “green.”

SkySong3

The four-story, 145,000-square-foot office and research building at the intersection of SkySong Boulevard and Innovation Place has achieved Silver LEED certification from the U.S. Green Building Council for its sustainable design and construction.

LEED—Leadership in Energy and Environmental Design—is a certification program that sets the standard for environmentally responsible construction in the U.S. Buildings are measured based on the number of points they earn across the categories of green building, such as energy, water, indoor environment, location and materials.

SkySong in 2009 earned environmental plaudits for the first two completed buildings on the site, SkySong 1 and SkySong 2, joining only a handful of projects in the Valley to have achieved Silver Certification of higher, and one of the few non-governmental projects to achieve such status.

“With some careful planning a touch of ingenuity, the SkySong 3 building is not only a beautiful property but an environmentally healthful one,” said Sharon Harper, President & CEO of Plaza Companies, the master developer of the SkySong project and the developer of SkySong 3. “A LEED Silver award confirms that Sky Song 3 tenants will work in a high-performance, energy-efficient building.”

The path to the LEED award began with the design process. The SkySong 3 project features sustainable strategies that were implemented, including:

• Use of native plant species and high-efficiency irrigation technology to achieve more than 73% reduction of water consumption for irrigation

• High efficiency design and systems technology to achieve an energy cost savings of 24%

• Over 33% of the total building materials were specified and manufactured using recycled materials.

• Over 35% of the total building materials include materials and products that were manufactured and extracted within a 500-mile radius of the project site

• Use of low-emitting materials like adhesives, sealants, paints, flooring, and composite wood to provide healthy indoor air quality

• Implementation of a Green Housekeeping Policy provided by the Plaza janitorial service contractor to optimize health indoor air quality for tenants and occupants during the building’s operational period

• Dedicated areas for collection and storage of recyclables within the building and onsite, including a tenant recycling waste disposal program provided by the janitorial service of the building

• Diversion of 69% of the on-site construction waste from the landfill

• Use of low-flow plumbing fixtures to achieve more than 39% water use reduction for the project

SkySong, the ASU Scottsdale Innovation Center, is home to a global business community that links technology, entrepreneurship, innovation and education to position ASU and Greater Phoenix as global leaders of the knowledge economy.

SkySong is a 42-acre mixed use development designed to:

• Create an ecology of collaboration and innovation among high-profile technology enterprises and related researchers

• Advance global business objectives of on-site enterprises

• Raise Arizona’s profile as a global center of innovation through co-location of ASU’s strategic global partners

• Create a unique regional economic and social asset

Companies located at SkySong enjoy a special relationship with Arizona State University, which has more than 73,000 students at four metropolitan Phoenix campuses. Its campus in Tempe is the single largest campus in the U.S., and it is located less than three miles from SkySong.

In addition to locating its own innovative research units at the center, ASU provides tenants with direct access to relevant research, educational opportunities and cultural events on its campuses. Through ASU’s on-site operations, tenant companies have a single point of contact for introductions to researchers, faculty and programs to address their specific needs.

 

Categories Recent Transactions

Taser Signs Office Lease at Pinnacle In Perimeter Center

Congratulations to TASER International on their expansion to the beautiful Pinnacle in Perimeter Center at 17851 N. 85th St. in Scottsdale. TASER was founded in 1993 and has remained committed to providing solutions which Protect Life, Protect Truth, and Protect Family. Taser’s industry-leading Conducted Electrical Weapons (CEWs) are used worldwide by law enforcement, military, correctional, professional security, and personal protection markets.

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Categories Narrative

The Most Expensive Cities in America

The decadent lifestyles of the rich are more unbelievable than ever. Foreign cars, luxury homes, and all the toys that go along with the money. Below I’ve combined a couple articles about the most expensive cities in the US where these people are living. Click through to the interactive map in the first article to see where these zip codes are located. Thinking about moving? Consider one of the houses below. For my money, I’ll take the Santa Barbara home (tied for Number 8) or Aspen at Number 3. What the heck, I will take Laguna (tied for Number 8), too.

Craig
602.954.3762
ccoppola@leearizona.com

P.S. Speaking of Foreign cars, we partnered with Mercedes-Benz of Scottsdale to find their new Scottsdale location, across from Fashion Square Mall.

For the full postcard, click here.

Mercedes Benz Postcard_Page_1


 

Lifestyles Of The Rich: The Most Expensive Cities And Zip Codes In The US [Maps]

Int'l Business Times
By: Lisa Mahapatra
October 9, 2013

most expensive cities map 2
IBTimes/Lisa Mahapatra

Eight of the 20 most luxurious ZIP codes in the United States are in California, seven are in New York, four in Florida, and one in Colorado, according to Coldwell Banker’s Luxury Market Report 2013.
These ZIP codes had the highest number of luxury home sales, all priced at $10 million or more, in the U.S.
Beverly Hills, the area with the famous 90210 ZIP code, topped the list with 18 luxury home sales between June 2012 and June 2013.
Click here for a series of interactive maps that give you a closer look of luxurious zip codes!

The 20 Most Expensive Neighborhoods in America
Business Insider
By: Megan Willett
October 7, 2013
most expensive 1
The super-rich continue to flock to Beverly Hills. The famous “90210” zip code had more $10 million-and-up home sales in the past year than any other zip code in the U.S., according to a new luxury market report from Coldwell Banker Previews International.Eighteen homes were sold for $10 million or more in the 90210 neighborhood between July 1, 2012 and June 30, 2013, the time period covered by the report.We taking a closer look at the 20 zip codes with the most $10 million+ homes sold during the 2012-2013 year. Photos are of homes in those neighborhoods that are currently on the market for $10 million or more.#10 (TIE) PACIFIC PALISADES, CA (90272): Pacific Palisades, a neighborhood on the Westside of LA and a popular filming location, had five home sales over $10 million.

most expensive 2

Coldwell Bankers Preview International

A Pacific Palisades six-bedroom mansion on sale for $14.95 million.

Source: Coldwell Banker Previews International

#10 (TIE) MIAMI BEACH, FL (33140): The northern section of Miami Beach, known for its galleries and spas, had five home sales over $10 million.

most expensive 3

Coldwell Bankers Preview International

A seven-bedroom home in 33140 Miami zip code for $11.9 million.

Source: Coldwell Banker Previews International

#9 (TIE) ATHERTON, CA (94027): One of the wealthiest towns in the US, Atherton had six home sales over $10 million.

most expensive 4

Coldwell Bankers Preview International

A seven-bedroom home in Atherton currently listed for $27.4 million.

Source: Coldwell Banker Previews International

#9 (TIE) PALM BEACH, FL (33480): Nicknamed “the Gold Coast,” Palm Beach had six home sales over $10 million.

#9 (TIE) PALM BEACH, FL (33480): Nicknamed "the Gold Coast," Palm Beach had six home sales over $10 million.

Coldwell Bankers Preview International

The most expensive home currently for sale in Palm Beach for $6.67 million.

Source: Coldwell Banker Previews International

#9 (TIE) NEW YORK, NY (10065): NYC’s Upper East Side neighborhood from 60th Street to 69th Street had six home sales over $10 million.

#9 (TIE) NEW YORK, NY (10065): NYC's Upper East Side neighborhood from 60th Street to 69th Street had six home sales over $10 million.

Google Maps

A condo on Park Avenue currently on sale for $10.995 million.

Source: Coldwell Banker Previews International

#9 (TIE) NEW YORK, NY (10013): NYC’s downtown SoHo neighborhood had six home sales over $10 million.

#9 (TIE) NEW YORK, NY (10013): NYC's downtown SoHo neighborhood had six home sales over $10 million.

Google Maps

The most expensive home currently listed in NYC’s 10013 zip code for $4.95 million.

Source: Coldwell Banker Previews International

#8 (TIE) SANTA BARBARA, CA (93108): Also including Montecito, a census-designated place within Santa Barbara, this zip code had seven home sales over $10 million.

#8 (TIE) SANTA BARBARA, CA (93108): Also including Montecito, a census-designated place within Santa Barbara, this zip code had seven home sales over $10 million.

Coldwell Bankers Preview International

A four-bedroom home in Santa Barbara listed for $18 million.

Source: Coldwell Banker Previews International

#8 (TIE) LAGUNA BEACH, CA (92651): Made famous by the reality TV series of the same name, Laguna Beach had seven home sales over $10 million.

#8 (TIE) LAGUNA BEACH, CA (92651): Made famous by the reality TV series of the same name, Laguna Beach had seven home sales over $10 million.

Coldwell Bankers Preview International

A $65 million five-bedroom home in Laguna Beach, CA.

Source: Coldwell Banker Previews International

#8 (TIE) NAPLES, FL (34102): Naples, one of Florida’s swankiest neighborhoods, had seven home sales over $10 million.

#8 (TIE) NEW YORK, NY (10022): NYC’s Midtown East neighborhood had seven home sales over $10 million.

#8 (TIE) NEW YORK, NY (10022): NYC's Midtown East neighborhood had seven home sales over $10 million.

Brown Harris Stevens

A 52nd Street duplex currently on sale for $19.5 million.

Source: Brown Harris Stevens

#7 BRENTWOOD, CA (90049): This Los Angeles neighborhood had eight home sales over $10 million.

#7 BRENTWOOD, CA (90049): This Los Angeles neighborhood had eight home sales over $10 million.

Coldwell Bankers Preview International

A 13-bedroom home in Brentwood listed for $35 million.

Source: Coldwell Banker Previews International

#6 (TIE) MALIBU, CA (90265): This affluent beach community in northwestern LA had 10 home sales over $10 million.

#6 (TIE) MALIBU, CA (90265): This affluent beach community in northwestern LA had 10 home sales over $10 million.

Coldwell Bankers Preview International

A $54 million, 13-bedroom mansion in Malibu.

Source: Coldwell Banker Previews International

#6 (TIE) NEW YORK, NY (10028): NYC’s Upper East Side neighborhood from 80th Street to 86th Street had 10 home sales over $10 million.

#6 (TIE) NEW YORK, NY (10028): NYC's Upper East Side neighborhood from 80th Street to 86th Street had 10 home sales over $10 million.

Coldwell Bankers Preview International

The most expensive home in NYC’s 10028 zip code is currently this $3.695 million apartment.

Source: Coldwell Banker Previews International

#6 (TIE) NEW YORK, NY (10014): NYC’s West Village and Meatpacking District neighborhoods had 10 home sales over $10 million.

#6 (TIE) NEW YORK, NY (10014): NYC's West Village and Meatpacking District neighborhoods had 10 home sales over $10 million.

Coldwell Bankers Preview International

A $14 million house on Bethune Street in NYC’s 10014 neighborhood.

Source: Coldwell Banker Previews International

#5 MIAMI BEACH, FL (33139): South Miami Beach, home to some of Florida’s best restaurants and nightlife, had 11 home sales over $10 million.

#5 MIAMI BEACH, FL (33139): South Miami Beach, home to some of Florida's best restaurants and nightlife, had 11 home sales over $10 million.

Coldwell Bankers Preview International

This 11-bedroom home in Miami’s 33139 zip code is listed for $35 million.

Source: Coldwell Banker Previews International

#4 BEL AIR, CA (90077): An affluent residential community on the Westside of LA, Bel Air had 12 home sales over $10 million.

#4 BEL AIR, CA (90077): An affluent residential community on the Westside of LA, Bel Air had 12 home sales over $10 million.

Coldwell Bankers Preview International

A $75 million, 10-bedroom mansion in LA with tennis court.

Source: Coldwell Banker Previews International

#3 (TIE) ASPEN, CO (81611): The favorite ski town of millionaires, Aspen had 16 home sales over $10 million.

#3 (TIE) ASPEN, CO (81611): The favorite ski town of millionaires, Aspen had 16 home sales over $10 million.

Coldwell Bankers Preview International

A seven-bedroom home in Aspen on sale for $39.75 million.

Source: Coldwell Banker Previews International

#3 (TIE) NEW YORK, NY (10021): NYC’s Upper East Side neighborhood from 69th Street to 76th Street had 16 home sales over $10 million.

#3 (TIE) NEW YORK, NY (10021): NYC's Upper East Side neighborhood from 69th Street to 76th Street had 16 home sales over $10 million.

Coldwell Bankers Preview International

The most expensive home in 10021 is this condo on 72nd street for $8.95 million.

Source: Coldwell Banker Previews International

#2 NEW YORK, NY (10023): NYC’s Lincoln Square neighborhood on the Upper West Side had 17 home sales over $10 million.

#2 NEW YORK, NY (10023): NYC's Lincoln Square neighborhood on the Upper West Side had 17 home sales over $10 million.

Coldwell Bankers Preview International

A seven-bedroom condo in this building is currently listed for $12 million.

Source: Coldwell Banker Previews International

#1 BEVERLY HILLS, CA (90210): The most famous zip code in America, Beverly Hills had 18 homes sales over $10 million.

#1 BEVERLY HILLS, CA (90210): The most famous zip code in America, Beverly Hills had 18 homes sales over $10 million.

Coldwell Bankers Preview International

This nine-bedroom mansion in Beverly Hills is on sale for $32 million.